Taiwan’s Central Bank governor, Yang Chin-long, has told the island’s lawmakers that the Central Bank is cautious about the introduction of a national cryptocurrency.
At the beginning of the year, Mr. Yang, as the Deputy Chief of Taiwan’s Central Bank, indicated that the bank had initiated an evaluation to determine the benefits and challenges of a central bank-issued cryptocurrency.
According to a report from CoinDesk, the governor argued that cryptocurrencies are currently not fulfilling their original intended purposes in a meeting with the Island’s lawmakers. He said that speculation has taken over from cryptocurrencies’ intended role as a payments tool. He said,
Cryptocurrencies have since become a commodity with high volatility as a result of market speculation,
Central Bank Closely Observing Experiments
The governor has indicated that cryptocurrencies have a bright future, but their volatility must be dealt with. During the meeting with the lawmakers, he said that the Central Bank is currently observing other countries which have launched their own national cryptocurrencies.
Mr. Yang, however, did not divulge the details of the plans to introduce a state-backed cryptocurrency.
We are closely watching what will happen in other jurisdictions but we can’t go as far as announcing we plan to issue digital New Taiwan dollar yet,
During his inauguration on February 27, Mr. Yang said that he will seek to use the new technology like blockchain to enhance the banking sector on the island. He said that during his tenure, he would seek to use blockchain to enhance the security and efficiency of the island’s electronic payment platforms.
Others Are Doing It
Taiwan is not the first country to moot the idea of introducing a national cryptocurrency. Countries like Venezuela have already launched their virtual coins, which have raised good revenue for the government. In addition, Iran and Turkey are at advanced stages of developing their own state-backed cryptocurrencies.
The idea by the Taiwan’s Central Bank is not really that far-fetched, as governments all over the world want to join the crypto craze. More governments are becoming interested with the largely unregulated sector with the aim of protecting consumers, but also to rake in revenue from the ever-growing crypto market.
The new governor’s tenure seems to have started in the right way for the crypto family in Taiwan. He has also encouraged the local banks to explore new ways to utilize blockchain technology in their operations.
If the governor continues with this trend, Taiwan could easily become a major destination for crypto enthusiasts in a region that is becoming more volatile for cryptocurrencies and blockchain innovation.
Do you think it is a good idea for governments to launch state backed cryptocurrencies? Share your thoughts with us in the comments section.
Image Credit: Deposit Photos